FAQ: business lending & business loans for business owners
Business Loans Frequently Ask Questions
Details of The Adelaide Small Business Loans
Let me know how you are able to avail the Adelaide Small Business Loans
Adelaide unsecured loans provides amounts between $5,000 and $100,000 with terms between 3 and 24 months. They also offer cash flow friendly repayments that are either per day or weekly.
What is how is the Unsecured Loan different from the traditional company loan?
You can apply to get this Small Business Loan in under 10 minutes online or over the phone. You’ll get an immediate response, and the funds could be in your account in 24 hours. Traditional company loans reference an annual rate of interest plus other fees and charges. This company loan is a loan that is priced upfront so you will know in advance the total amount due, which includes any interest, fees or charges. This is then divided into a daily or weekly installment amount.
What could the Small Business Loan be used for?
The Small Business Loan can be used for nearly every company purpose including cash flow management, company remodeling, marketing to purchase inventory, new equipment, for general working capital and so much more. The loan cannot be used for personal use.
About the Larger Adelaide Business Loans
What is the Larger Adelaide Business Loan?
The Larger Business Loan is a larger size loan to aid in business expansion opportunities. Loans are between $100,000 and $500,000 for a fixed period of up to 36 months. The repayments are made weekly or fortnightly, depending on your cash flow.
How is the Origination Fee calculated?
It is crucial to note that the Larger Business Loan has an Origination Fee, calculated at 2.5% of the amount of the loan.
Am I eligible for the Larger Business Loan?
To qualify for a loan that is this large, your business needs to be trading for at least 3 years, and have an annual income of $700K. Your company must belong to a New Zealand Citizen (or Permanent Resident) with a minimum age of 18 years old and have a New Zealand company (with a valid NZBN/IRD) and be able to prove at least 12 months of trading.
What can I use the funding for?
A Business Loan of a larger size can be used for nearly any company need, including business improvements, purchasing inventory or new equipment for general working capital and so much more. The loan cannot be used to fund personal expenses.
Is the Larger Business Loan one that is secured?
Asset security is needed for accessing funds over $150,000. This can be done as a result of an charge on assets, and could include registration with the PPSR or registering as a caveat.
A personal or director’s ensure is a commitment to repay a loan which is general in nature, rather than stipulating the security for a particular asset. The person who signs the ensure is personally accountable if the business lender is not able to repay the debt.
The Personal Property Securities Register (PPSR) is an online, central register operated by the New Zealand Government. It reflects security interests that are registered for personal property (including goods or assets). The PPSR gives preference over private property granted according to the date a security interest that is registered.
An affidavit is an official document lodged to offer an official notice of a claim against a property.
What is a pre-approval without Credit Check?
If you’re applying for an enterprise loan that is greater than $250,000 we may be able to provide a preliminary pre-approval to help smooth out the process. We may be able to make this decision without a credit verification and within 6 hours of the initial application. This pre-approval is made based on an initial assessment, which involves you answering some financial well-being questions. This is not an offer of credit or guarantee of credit. A conditional approval is subject a full credit assessment and any offer that you receive could be on different terms.
The application process
Do I qualify for funds?
You are eligible to apply for a business loan if you
- are a New Zealand Citizen (or Permanent Resident)
- are 18 years or older, have a New Zealand business (with a valid NZBN/IRD)
- can demonstrate at least 6 months’ worth of transactions (for a unsecured loan $5K – $100K) or 3 years of continuous trading (for the Larger Business Loan $100K - $500K)
How do I apply?
The process for applying is fast and easy. Just fill out the online application within a few minutes and an experienced company loan specialist will be in touch to help you.
To apply for up $100,000, you’ll require the right identification documents (valid Driver’s License) and an NZBN/IRD that is valid and at least 6 months of bank statements.
For larger loan sizes, you’ll need:
$100K to $250K: Application requirements, including credit approval, 6-12 months of bank statements, IRD statement (if the loan is greater than $150K).
$250K-$500K: Information on the application including credit consent, 12 months of bank records, IRD statement Last 2 years’ finalised financial statements, as well as interim current financial year financials including Aged Payables, Aged Receivables summaries.
What speed will I be able to get an answer?
For an unsecured loan ($5K up to $100,000) we typically offer an answer in just one hour, provided you submit your request at quality company times and let us make use of the advanced bank verification system to instantly verify your bank’s information online. If you decide to send us copies of your bank statements , we will be able to provide an answer in just the span of one company day.
For Larger Business Loans ($100K or more) we may be able to provide the conditional pre-approval within six hours. Once you’ve signed the pre-approval, turnaround times are between 2 and 3 days for the final approval, however this can be quicker based on the specifics of each application. Some deals have been approved within the space of 24 hours.
The quickest method would be to ensure you apply during normal company hours, and let us use the advance bank verification link to instantly check your bank’s information online. If you send us the copies of bank statement, it can take a bit longer.
How soon will I receive the money?
For the Small Business Loan ($5K and up) we typically provide a response in one hour, provided you make your application within normal business timings and let us make use of the advanced bank verification system link to instantly verify your bank information online. If you choose to submit copies of your bank statements, we will be able to provide a decision within an business day.
For Larger Business Loans ($100K up to $500,000) we could be capable of offer you with pre-approval conditional to your application in around six hours. After you’ve signed the pre-approval form, it will take around 2-3 days for final approval. However, it could be faster based upon the circumstances for each application. Certain transactions have received approval within 24 hours.
The fastest method can be ensure you apply during standard business hours and let us use the advance bank verification link to instantly confirm your bank details online. If you decide to send us the copies of bank statement, it takes a bit longer.
How much can I borrow?
We provide loan amounts between $5,000 and $500,000. When you make an application for a specific amount we look at a variety of aspects for determining your health that is your company and the amount of repayments that your company is able to afford. The total amount of the loan will be determined by the particular circumstances the company.
When you submit an application for a set amount, we will consider a number of factors to determine the health of your company and the amount of the repayments your company can afford. The total amount of your loan will be determined by the specific circumstances of your business.
Fees & repayments
How much should you charge for the cost of a business loan?
If you decide to apply for the business loans, we’ll assess the risk profile the business and offer an individualised offer that includes loan amount, term and the interest rates. A company loan is an upfront priced loan therefore you will know in advance the total amount payable including any interest rates, fees or charges.
What is the factor that determines the price I am charged?
The interest rates on company loans rates depend on several factors including the amount of money borrowed, the company assets the money are used to purchase and the sector the business is in, how long the business has been operating as well as what percentage of the company has enough cash flow to cover the loan, and overall health or creditworthiness of the business.
What are the costs?
There aren’t any hidden charges for our company loans. You’ll know precisely how much it is that you be required to pay and when, starting from the first day. There’s no compounding interest and the loan comes with no additional fees (as long as you are able to make your payments in time).
We do not charge an Application Fee. You can get a cash loan with with no upfront cost or obligation to proceed.
The Origination Fee covers the expenses involved with the setting up and management of the loan. This is only a fee if you choose to proceed with the loan. The Origination Fee for us is 2.5% of the amount of loan.
Can I pay off the loan in advance?
You can decide to repay the entire amount of the loan early at any time.
If you do decide to do this please call our helpful business loan specialists. The specialists will provide you with the details of your repayment as well as an early payout amount. This is calculated as the total of the principal remaining plus any accrued interest as of the date of early payout, plus 1.5% of the principal amount remaining as well as any outstanding fees.
How do repayments work?
To help you avoid missing payment dates and to align with your cash flow cycle we provide repayments either weekly or daily. These are automatically deducted from your nominated business account.
Security & privacy
Will my data be protected?
The security of your personal information, as well as being clear about how we collect data, process, exchange and ensure the security of your information is of huge importance and is a crucial element of our relationship with you.
Is it safe to link my bank account to the platform?
Yes. We utilise industry-recognised encryption techniques to protect your sensitive, personal as well as financial data. Our funders are ISO 27001 certified for our dedication to security for our customers and security. We employ an exceptionally sophisticated bank verification system to immediately verify the bank account details online. This allows us to provide a fast response.
About business loans
What exactly is an asset-based loan (a secured loan)?
Asset-based borrowing is when the business owner makes use of the assets they have to make the loan. The asset may be an individual property, such as the family home, or an company asset such as a truck as well as a piece of machine.
The vast majority of the lenders even the banks with the biggest size, prefer to guarantee loans against an asset. If you’re struggling to pay back the loan then the asset could be offered for sale by the lender. In essence it is the process of securing new funding taking advantage of the value of what you already own.
Do I need security for an business loan?
For loans up to $150,000 no asset security is required prior to the loan’s access However, we do require an individual guarantee. In the event that you fulfill the terms of your loan (as specified in your loan contract document) the security of assets will never be required. For loans that exceed $150K, generally there is a personal ensure and security that is in the form the charge of assets.